India’s satellite communication rollout is set to launch as soon as the Telecom Regulatory Authority of India (TRAI) finalises the spectrum pricing. Union Minister for Communications Jyotiraditya Scindia told reporters at the India Mobile Congress that the new Satcom services will begin once the pricing decision is announced.
Scindia said India has already issued two licenses for satellite services and one letter of intent. “The next step depends on the players, but TRAI still needs to decide how much the spectrum will cost,” he explained, emphasising that a clear price will unlock the market.
The minister highlighted how competitive the Indian telecom sector is, describing it as one of the most deregulated markets worldwide. He cited the country’s 1.2‑billion‑user base—over 90% of a 1.4‑billion population—and noted that India enjoys the lowest voice and data rates on a global scale. “Our voice rate sits at just 0.03 of the minimum, and data costs are around 90 paise—about 11 cents—making us one of the world’s cheapest telecom providers,” Scindia said.
Turning to public‑sector players, Scindia clarified that BSNL has not purchased the Metropolitan Telephone Network Limited (MTNL) assets; instead, it has taken over MTNL’s operations, which transferred from Delhi and Bombay on January 1, 2025. He praised BSNL’s expansion and operational improvement, noting that the company’s operating margin surged 50‑60% in FY 2024‑25’s first quarter. While BSNL remains unprofitable at the net‑profit level—thanks to its record capital expenditure and subsequent depreciation charges—its operating profit remains strong.
In a push for rural connectivity, Scindia revealed that the ministry is funding innovative digital use cases. “We’re developing proof‑of‑concept (POC) projects. Once a POC proves viable, the government will roll it out more broadly,” he said. The ministry plans to assess projects using a 100‑point system, with additional scoring to award successful pilots.
On the recent spectrum auction, Scindia contextualised the outcomes. “Those auctions must be considered in historic terms,” he said. He explained that the auction where 5G spectrum sold at a high reserve price reflected the still‑emerging demand for that band. Because the second‑round 5G allocations have not yet been fully used, market demand will adjust, leading to more competitive pricing in future rounds. Scindia emphasised that reserve pricing is carefully calibrated to maximise revenue while ensuring spectrum remains affordable for telecom operators and, ultimately, for consumers.
The government’s overarching goal, he noted, is to balance the interests of industry players with consumer benefits. “Our spectrum policies aim to maximise the utility of resources and supply raw material at competitive prices that benefit end users,” Scindia concluded.
With Spectrum Pricing pending, India’s next steps toward satellite communication expansion and broadband progress remain under active development. The telecom community, investors, and consumers alike will watch closely as TRAI moves forward with its decisions.
Source: aninews
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